Monarch Casino & Resort (NASDAQ: MCRI) and Las Vegas Sands Corp. (NYSE:LVS) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Valuation and Earnings

This table compares Monarch Casino & Resort and Las Vegas Sands Corp.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Monarch Casino & Resort $224.35 million 2.73 $56.76 million $1.48 23.57
Las Vegas Sands Corp. $12.29 billion 4.15 $4.37 billion $2.58 24.99

Las Vegas Sands Corp. has higher revenue and earnings than Monarch Casino & Resort. Monarch Casino & Resort is trading at a lower price-to-earnings ratio than Las Vegas Sands Corp., indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Monarch Casino & Resort has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Las Vegas Sands Corp. has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Monarch Casino & Resort and Las Vegas Sands Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monarch Casino & Resort 0 2 2 0 2.50
Las Vegas Sands Corp. 0 7 10 0 2.59

Monarch Casino & Resort presently has a consensus price target of $48.75, indicating a potential upside of 39.76%. Las Vegas Sands Corp. has a consensus price target of $64.15, indicating a potential downside of 0.51%. Given Monarch Casino & Resort’s higher probable upside, equities analysts clearly believe Monarch Casino & Resort is more favorable than Las Vegas Sands Corp..

Insider & Institutional Ownership

58.4% of Monarch Casino & Resort shares are owned by institutional investors. Comparatively, 38.0% of Las Vegas Sands Corp. shares are owned by institutional investors. 27.6% of Monarch Casino & Resort shares are owned by company insiders. Comparatively, 10.1% of Las Vegas Sands Corp. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Monarch Casino & Resort and Las Vegas Sands Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monarch Casino & Resort 11.77% 11.16% 8.92%
Las Vegas Sands Corp. 16.66% 29.91% 10.65%

Dividends

Las Vegas Sands Corp. pays an annual dividend of $2.92 per share and has a dividend yield of 4.5%. Monarch Casino & Resort does not pay a dividend. Las Vegas Sands Corp. pays out 113.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monarch Casino & Resort has increased its dividend for 4 consecutive years.

Summary

Las Vegas Sands Corp. beats Monarch Casino & Resort on 11 of the 17 factors compared between the two stocks.

Monarch Casino & Resort Company Profile

Monarch Casino & Resort, Inc. (Monarch), through its subsidiary, owns and operates the Atlantis Casino Resort Spa (the Atlantis), a hotel/casino facility in Reno, Nevada. The Company also owns and operates Monarch Casino Black Hawk. The Company’s segments include Atlantis and Monarch Casino Black Hawk. The Atlantis is located approximately three miles south of downtown in the area of Reno, Nevada. As of December 31, 2016, the Atlantis featured approximately 61,000 square feet of casino space; 824 guest rooms and suites; eight food outlets; two espresso and pastry bars; a 30,000 square foot health spa and salon with an enclosed year-round pool; two retail outlets offering clothing and traditional gift shop merchandise; an 8,000 square-foot family entertainment center, and approximately 52,000 square feet of banquet, convention and meeting room space.

Las Vegas Sands Corp. Company Profile

Las Vegas Sands Corp. is a developer of destination properties (integrated resorts) that feature accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities. The Company owns and operates integrated resorts in Asia and the United States. The Company’s principal operating and developmental activities occur in three geographic areas: Macao, Singapore and the United States. In Macao, the Company’s segments include The Venetian Macao; Sands Cotai Central; The Parisian Macao; Four Seasons Macao; Sands Macao, and Other Asia (comprises the Company’s ferry operations and various other operations). In Singapore, the Company’s segments include Marina Bay Sands. In the United States, the Company’s segments include Las Vegas Operating Properties and Sands Bethlehem. The Company also offers players club loyalty programs at its properties, which provides access to rewards, privileges and members-only events.

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